Abstract
Coastal areas in developing countries are very vulnerable to the effects of sea-level rise. Adaptation to sea-level rise through protection measures can include both engineering and nature-based solutions. However, comparative economic analyses across both types of solutions are sparse. Moreover, stated preference studies in developing countries that are commonly applied to estimate the benefits of adaptation projects increasingly include time payments as an alternative to money payments. The implications of this payment mode on policy recommendations remains unclear. In this study, we conduct cost-benefit analyses (CBA) that incorporate the results of discrete choice experiments with money as well as time payments for both an engineering (groynes) and a nature-based (beach nourishment) solution. We provide a range of sensitivity analyses regarding discount rates, effectiveness of the measures, cost estimates and different projections in the benefit calculations. These quantitative CBAs are complemented by qualitative insights from focus group discussions. We find overall negative net present values of both engineering and nature-based erosion solutions when money payments are applied, but positive values when time payments are applied. Qualitative insights describe the disruptive effects of erosion on local livelihoods. The qualitative results combined with previous studies’ results provide support for the use of the time payment results. Furthermore, our results indicate that nourishment has a larger positive effect on welfare than groynes. These results provide relevant insights for decision-makers regarding coastal adaptation and stated preference practitioners in developing countries regarding the use of time payments.
Highlights
Coastal areas are sensitive to climate change due to sea-level rise leading to negative impacts such as coastal erosion, coastal flooding and submergence (IPCC, 2014)
In this study we provided an economic analysis of an engineering and a nature-based solution to coastal erosion
Benefits are estimated based on discrete choice experiment (DCE) with either the standard money payments or the increasingly popular time payments, thereby addressing the question on how this difference in payment vehicle affects policy recommendations
Summary
Coastal areas are sensitive to climate change due to sea-level rise leading to negative impacts such as coastal erosion, coastal flooding and submergence (IPCC, 2014). Land use change and population growth exacerbate the impact and risk of sea-level rise (IPCC, 2014; Hossen et al, 2019). Developing countries are generally more vulnerable to the impacts of sea-level rise due to their limited capacity to prevent and absorb the effects of ongoing changes and disasters (Parker, 2006; IPCC, 2014; Jongman et al, 2015; Hinkel et al, 2012; Hossen et al, 2019). Coastal adaptation towards sustainable and climate-resilient coasts has progressed less in developing countries than in the developed world (IPCC, 2014; Hinkel et al, 2012)
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